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EBA calls for lifting restrictions on the operation of foreign railway wagons in Ukraine

21/ 03/ 2025
  The European Business Association deems it necessary to restore equal conditions for freight transportation services within Ukraine, including the possibility of operating foreign railway wagons. According to reports from Ukrzaliznytsia, as of March 16, wagons belonging to foreign railway administrations, as well as private wagons registered under other railway administrations, are permitted for use only in international freight transportation. From the business perspective, these restrictions create an uneven playing field in the domestic market, as they do not apply to foreign wagons managed by Ukrzaliznytsia. EBA member companies report that this is not the first attempt by Ukrzaliznytsia to halt the operation of foreign-registered freight wagons. Similar measures were introduced in September 2024 but were suspended following strong opposition from businesses and industry associations. EBA experts emphasize that the operation of privately owned freight wagons within Ukraine, including those registered under the railway administrations of CIS and Baltic countries (except for sanctioned states), is fully regulated by national legislation. Since the onset of Russia’s military aggression against Ukraine, Ukrainian freight shippers and operators have had to rely on wagons from European countries, including the Baltics, investing in their maintenance and operation. This step was necessary due to the critical shortage of serviceable rolling stock at Ukrzaliznytsia, slow transit speeds, and uncompetitive rates for using Ukrzaliznytsia’s own wagons. At that time, this measure helped ensure uninterrupted freight transportation, which the national carrier was unable to fully provide. The newly imposed restriction on the use of foreign wagons has caused concern and confusion among freight shippers and wagon operators. In their view, these measures lack sufficient justification and could lead to an artificial shortage of loading capacity, anti-competitive practices in the market, higher transportation costs, and a decline in the global competitiveness of Ukrainian goods. Last week, businesses reached out to the relevant authorities requesting clarification on this matter for market participants, freight shippers, and operators. Additionally, the EBA urges the suspension of these restrictions while the situation is being reviewed. EBA experts propose discussing the possibility of using rolling stock registered under other railway administrations by agreeing on a standard contract for the operation of freight wagons in Ukraine’s domestic rail network and ensuring their interoperability.

The European Business Association deems it necessary to restore equal conditions for freight transportation services within Ukraine, including the possibility of operating foreign railway wagons.

According to reports from Ukrzaliznytsia, as of March 16, wagons belonging to foreign railway administrations, as well as private wagons registered under other railway administrations, are permitted for use only in international freight transportation.

From the business perspective, these restrictions create an uneven playing field in the domestic market, as they do not apply to foreign wagons managed by Ukrzaliznytsia. EBA member companies report that this is not the first attempt by Ukrzaliznytsia to halt the operation of foreign-registered freight wagons. Similar measures were introduced in September 2024 but were suspended following strong opposition from businesses and industry associations.

EBA experts emphasize that the operation of privately owned freight wagons within Ukraine, including those registered under the railway administrations of CIS and Baltic countries (except for sanctioned states), is fully regulated by national legislation.

Since the onset of Russia’s military aggression against Ukraine, Ukrainian freight shippers and operators have had to rely on wagons from European countries, including the Baltics, investing in their maintenance and operation. This step was necessary due to the critical shortage of serviceable rolling stock at Ukrzaliznytsia, slow transit speeds, and uncompetitive rates for using Ukrzaliznytsia’s own wagons. At that time, this measure helped ensure uninterrupted freight transportation, which the national carrier was unable to fully provide.

The newly imposed restriction on the use of foreign wagons has caused concern and confusion among freight shippers and wagon operators. In their view, these measures lack sufficient justification and could lead to an artificial shortage of loading capacity, anti-competitive practices in the market, higher transportation costs, and a decline in the global competitiveness of Ukrainian goods.

Last week, businesses reached out to the relevant authorities requesting clarification on this matter for market participants, freight shippers, and operators. Additionally, the EBA urges the suspension of these restrictions while the situation is being reviewed.

EBA experts propose discussing the possibility of using rolling stock registered under other railway administrations by agreeing on a standard contract for the operation of freight wagons in Ukraine’s domestic rail network and ensuring their interoperability.

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